The following are some statistics on the enforcement actions taken and handling of complaints involving MPF trustees by MPFA for the period from 1 April 2023 to 31 March 2024.

Complaints involving MPF trustees

  • Total number of complaint cases involving
    MPF trustees: 376

*Since a complaint may cover more than one subject matter, the total number of subject matters of complaints may exceed the total number of complaints.

 


Enforcement actions involving MPF trustees

The MPFA imposed financial penalties on MPF trustees relating to non-compliances with scheme administration duties under the MPF legislation.

 

  • Financial penalty notices issued: 14
  • MPF trustees penalized: 3
  • Total amount of financial penalties: $8,640,0001


1 All penalties had been settled by the trustees.


 

Nature of scheme administration duties
No. of financial penalty notices issued
Processing of MPF transfer / payment
                                         8
Provision of information to scheme members
                                        2
Allocation of MPF into MPF funds
                                         4

Enforcement actions involving MPF intermediaries

Misconduct
Action taken
Effecting a transfer of a scheme member’s MPF benefits from an MPF scheme to another MPF scheme without the member’s authorization by misleading the member to sign transfer forms; and instructing a third party to impersonate the member in calling an MPF trustee to obtain the member’s MPF account information
Disciplinary action of disqualifying a Subsidiary Intermediary from registration for 20 months
Deliberately failing to carry out a scheme member’s instruction to transfer the member’s MPF benefits from an MPF scheme to another MPF scheme
Disciplinary action of disqualifying a Subsidiary Intermediary from registration for 1 month
Failing to execute an employer’s instructions for account opening and enrolments of six employees, and alert the employer within a reasonable time when there was a delay or failure to execute the instructions; failing to forward two cheques issued by the employer for making MPF contributions for its six employees to an MPF trustee; failing to ensure the two cheques issued by the employer were made payable to the MPF trustee; and failing to provide copies of the signed MPF forms to the employer and its employees as soon as reasonably practicable
Disciplinary action of public reprimand and disqualifying a Subsidiary Intermediary from registration for 20 months
Failing to carry out clients’ instructions promptly and accurately; failing to disclose necessary information to the clients; failing to treat information supplied by the clients as confidential; failing to provide copies of signed forms to clients; and a principal intermediary's failure to supervise adequately and monitor its subsidiary intermediaries’ compliance with manuals and guidelines for conduct of the regulated activities etc.
Advisory letters to 15 Subsidiary Intermediaries and one Principal Intermediaries to remind compliance with the relevant conduct requirements

Enforcement actions involving employers and scheme members
Criminal actions:
  • 352 summonses were applied against non-compliant employers and directors/managers of limited companies
  • 7 summonses were applied against MPF scheme members 
     
Civil actions:
  • 1 432 claims were filed to civil courts to pursue default contributions*
  • 133 Garnishee Orders were granted by court to seize money from defaulting employers’ bank accounts
  • 67 Bailiff actions were taken to seize assets of defaulting employers
  • 4 court orders were granted by court to compel convicted employers to rectify the non-compliance
  • 125 financial penalty notices were issued to repeat defaulters
Total amount of default contributions recovered:
  • $155 million of default contributions* were recovered for employees

*Default contributions include surcharge calculated at 5% of the amount of MPF contributions in arrears imposed on employers who failed to make MPF contributions for their employees within the prescribed period.